I’m surprised that both the author and Michelle consider this coverage as expensive. Every single one of my clients whom have asked for a proposal has purchased this important coverage. The biggest challenge I have is getting my clients to recognize that they could be sued for discrimination, harrassment, hostile workplace, age or sexual situations.

I normally see premiums range start at $100 per employee per year. I disagree that the employers should choose a high deductible. In my experience this will only yield a nominal (10% discount).

My advise on purchasing EPLI policies is as follows:

1. buy the coverage from a carrier that offers s specialized standalone policy. If you buy this from your General Liability carrier the premium will be more expensive and offer inferior coverage than a specialized policy.

2. purchase third party coverage that provides coverage for claims alledged by customers, vendors or visitors to your business. I sold this to one of my garage customers by painting this scenerio.

“A 20 something woman’s car breaks down on a Friday night. A tow truck shows up and the driver hits on the driver while driving her home. She feels threatened and sues the towing company for unwanted sexual advances”

3. purchase defense costs “outside the limit” so defense costs do not reduce the money available to settle a claim.